Who this covers: apprentices and trainees, young trades and early-career workers, and the parents considering a guarantee.
What lenders do differently
The guarantee
A parent offers their property as additional security for the part of the loan above 80 per cent, so the buyer needs little or no deposit and pays no mortgage insurance. The guarantee is limited to that slice, usually 20 to 25 per cent of the price, and is released when the loan falls below 80 per cent of the value through repayments or growth.
Apprentice wages
Lenders count the current wage, not the qualified rate, though a final-year apprentice with the award progression in writing is sometimes assessed a step ahead. Overtime and site allowances count with history. Capacity, not deposit, is the usual limit at this stage.
What the parents take on
The guarantor is liable for the guaranteed slice if the buyer defaults, and lenders require independent legal advice and assess the parents' own position. Retired parents with no income can still guarantee at many lenders where the guarantee is small against their property.
Schemes that stack
The 5% Deposit Scheme and the state first home concessions apply alongside a guarantee or instead of it; the First Home Super Saver scheme releases voluntary super contributions toward the deposit. Which combination suits depends on the price and the capacity.
Worth knowing before applying
A guarantee is a liability on the parents' credit file until released, which affects their own borrowing; a car loan taken out at the start of the apprenticeship is often the thing that caps capacity; and the borrowing capacity calculator shows what the current wage supports.
The tools that fit
Policies on all of the above differ lender to lender and change without notice; the value of the conversation is knowing which lender's policy reads your payslip best on the day. Understanding how your income is read before you apply is what makes the application calm.